Tuesday, February 24, 2009
Texas House Bill would end percentage-based tax on snuff
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A bill by State Rep. Al Edwards (D-Houston) would change the way snuff is taxed in Texas.
Under current law, snuff in Texas is taxed at a rate of 40 percent of the manufacturer’s list price exclusive of discounts or deals. The 40 percent rate took effect January 1, 2007 as a result of legislation passed in the 2006 special session on school finance; the previous tax rate was 35.213 percent. The rate was and remains one of the highest snuff tax rates in the nation.
Under the legislation, HB 1666, snuff would be taxed in a fashion similar to cigarettes. Snuff would be taxed at one dollar per ounce (with a proportionate tax rate on fractions of an ounce), except for snuff weighing less than 1.2 ounces, which would be taxed as though it were a can of snuff weighing 1.2 ounces.
The tax would be based upon the net weight of the product as listed by the manufacturer.
In the case of units with multiple cans, tax would be imposed as if each can were sold separately.
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Comments
Scott Doyle Verified
Another bone-chilling HB being hard fought in the capitol! Not sure about y'all, but this is one more reason I'm proud to be a Texan.
8 months, 2 weeks ago ( Link to this comment | Suggest removal )
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